Luxury Tax to encourage people to buy more fuel efficient cars

Trinidad and Tobago Finance Minister, the Honourable Colm Imbert, announced recently in parliament that the mid-year budget now includes a new “50% Luxury Tax” on the MVT and Customs Duty.

The new increased duties and taxes affects vehicles with an engine size exceeding 1999 cc. but does not include taxis, maxi-taxis, goods vehicles, agricultural vehicles, trucks, private school buses and vehicles used for public purposes.

So what does that all mean?

Well lets say for our example, the car in question arrives in Trinidad and Tobago for $100,000 dollars. We call this the C.I.F. or the Cost, Insurance and Freight. Next we need to calculate the M.V.T. or Motor Vehicle Tax. In Trinidad and Tobago this is based on engine size and calculated by the CC or cubic centimetres of engine displacement. Lets say our engine has a displacement of 2499cc (often referred to as a 2.5L engine, common in SUV, Pickups, Panel Vans and lots of other vehicles).

With that in mind and the figures above, we can calculate what the cost of the vehicle would be with taxes.

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